s. Refer to Flgure 10-1. This graph represents the tobacco industry. Without any
ID: 1123138 • Letter: S
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s. Refer to Flgure 10-1. This graph represents the tobacco industry. Without any government intervention, the equilibrium price and quantity are a. $1.90 and 38 units, respectively b. $1.80 and 35 units, respectively c. $1.60 and 42 units, respectively d. $1.35 and 58 units, respectively 6. Refer to Figure 10-1. This graph represents the tobacco industry. The socially optimal price and quantity are a. $1.90 and 38 units, respectively b. $1.80 and 35 units, respectively c. $1.60 and 42 units, respectively. d. $1.35 and 58 units, respectively 7. When a policy succeeds in giving buyers and sellers in a market an incentive to take into account the external effects of their actions, the policy is said to a. equalize private value and private cost b. equalize private cost and external cost. c. externalize the actions of the buyers and sellers. d internalize the extermality. 8. When a good is excludable, a. one person's use of the good diminishes another person's ability to use it. b. people can be prevented from using the good c. no more than one person can use the good at the same time. d. everyone will be excluded from using the good. 9. If people can be prevented from using a certain good, then that good is called a. rival in consumption. b. excludable. c. a common resource d. a public good. 10. A view of a spectacular sunset along a private beach is an example of a a. private good b. public good. c. nonrival but excludable good. d. rival but nonexcludable good. 11. A cheeseburger is a a. common resource, because it is rival in consumption but not excludablo. b. public good, because it is rival in consumption but not excludable. c. public good, because it is excludable and rival in consumption. d. private good, because it is excludable and rival in consumption. PaçExplanation / Answer
5,6 figure missing
7> d
This is internalization as the external costs are beared by the market participants now.
8> b
This is the definition of excludability of a good.
9> b
This is same as the previous question.
10> b
It is so because it is non-rival and non-excludable
11> d
Cheese-burger is a commodity sold in the market.
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